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The mathematician of the Complutense University of Madrid, José-Vidal Ruiz Varela, argues that Europe must raise its borrowing limit, leaving its deflationary policy. Meanwhile, USA must correct debt and raise the interest rates. Raising the interest rates in the USA and dropping them in Europe, recovers the European domestic demand and EE.UU may return to invest in Europe, with a stronger dollar, without any problem, generating hundreds of thousands of Jobs

Bank holdings of government bonds will be tested among other debt categories
in the European Central Bank's planned stress test next year, the bank's
president said , but he warned that the larger debate over risk weights
for sovereign debt holdings isn't up to the ECB"Sovereign debt is going to be stressed like all other categories in banks'
balance sheets," ECB President Mario Draghi said during a plenary debate on the
ECB's Annual Report 2012 at the European Parliament in Strasbourg, France
Before the ECB takes over the supervision of banks in the euro zone in
November 2014, it is conducting a review of the balance sheets of the largest
euro-zone financial institutions in an attempt to bolster confidence in European
banks and spur new lending to the private sectorThe review will include a risk
assessment, a balance sheet assessment and a stress test, conducted with the
European Banking Authority
Mr. Draghi made a point to separate how the ECB will treat sovereign debt in
its stress test from the debate over whether banks should have to back up their
sovereign debt holdings with adequate capital While some have suggested that
the ECB should have different risk weights on sovereign debt, Mr. Draghi said
"this is not the task for us or for now."
"This is a global task that will be discussed by the Basel Committee at the
proper time," the president added
Peter Praet, ECB executive board member responsible for the central bank's
economics division, echoed Mr. Draghi's comments in an interview with the
Financial Times, and argued that stressing the sovereign debt banks hold could
lead banks to pare their use of central bank liquidity to buy more government
bonds"Appropriately treating banks' holdings of sovereign debt according to the
risk that they post to banks' capital makes it unlikely that Banks will use
central bank liquidity to excessively increase their exposure to sovereign
debt," Mr. Praet saidThe banks would be wary of the constraints placed on sovereign debt by the
stress tests, he addedThe ECB pumped more than 1 trillion euros ($1.38 trillion) of three-year
loans into the euro zone's banking system about two years ago. These long-term
loans helped avert a funding crisis for the banks. But they did little to
stimulate lending to firms and households and were instead used primarily to buy
government bondsAs a result, Mr. Draghi said Thursday that another long-term loan from the
ECB would have to be geared and designed to increase the probability that it
reaches real economyIn the roughly two-hour debate, the central bank president stressed that the
ECB sees no sign of deflation in the euro zone, but countered that the region
will see a protracted period of low inflation, justifying the central bank's
November rate cut
"We are well aware of the downside risks that [low inflation] might entail.
We stand ready to act and we are able to act," Mr. Draghi said